The Federal Government has achieved full subscription for its N501 billion maiden power sector bond under the Presidential Power Sector Debt Reduction Programme, reflecting strong investor confidence in ongoing electricity market reforms.
This was disclosed on Tuesday by the Special Adviser to the President on Energy, Mrs. Olu Arowolo Verheijen, via X (formerly Twitter).
Proceeds from the bond are intended to clear longstanding payment arrears to power generation companies, boost liquidity in the sector, and enhance confidence in the Nigerian Electricity Supply Industry.
The bond issuance comes after years of liquidity challenges in the power sector and is part of the Federal Government’s broader efforts to stabilise the electricity market and attract new investments.
Mrs. Verheijen described the Programme as a decisive reset for Nigeria’s electricity market, linking debt resolution with wider financial and structural reforms.
The Group Managing Director of Sahara Power Group,
Mr. Kola Adesina, said, “Capital formation can only come when there is confidence, when you can truly see a line of sight in recovering investments previously made.”
“Once this process is over, construction will commence immediately on the second phase of our Egbin Power Plant.”
Stakeholders say that settling legacy debts is expected to restore investor confidence and attract fresh capital into power generation and related infrastructure.
The Series 1 Power Sector Bond Issuance, managed by NBET Finance Company Plc, was fully subscribed at N501 billion—comprising N300 billion from the capital markets and N201 billion in bonds allocated to participating power generation companies.
Under the PPSDRP, verified receivables for electricity supplied between February 2015 and March 2025 are being settled through negotiated agreements with generation companies.
By settling historic arrears, the Programme is expected to bolster the balance sheets of power generation companies and enhance their capacity to meet both operational and debt obligations.
It is projected to support 4,483.60 megawatt-hours per hour of electricity generation across Nigerian generation companies.
